Smartphone sales have dipped globally and Samsung should be worried

The iPhone was released eleven years ago in 2007, back then Nokia and BlackBerry were the market leaders and shipped tens of millions of phones every year. Since then, Android OS has picked up a majority of the market and now we have dozens of smartphone makers trying to grab a piece of the pie.

Smartphone sales had been on a consistent rise in the last decade, but the trend has diminished and according to IDC, the industry has witnessed a six percent year-over-year drop in Q3 2018. The report estimates vendors shipped 355.2 million units from July to September.

What’s even more surprising is Samsung and Apple’s decline. The South Korean giant had a 13.4 percent drop in the total number of units shipped while Apple saw a rise of a meager 0.5 percent. Although, Samsung continues to be at the top with a market share of 20 percent, followed by Huawei at 14.6 percent.

While Samsung and Apple seem to have reached a saturation point, Huawei and Xiaomi have recorded a staggering growth of 32.9 percent and 21.2 percent, respectively. The two Chinese brands have been very aggressive this year with multiple product launches in developing markets of Asia.

IDC says Apple could edge out Samsung and Huawei for first place, thanks to its new iPhone XS, XS Max, and XR. Samsung’s flagships seem to have under-performed and the company is struggling in the budget as well as midrange segments.

While Apple’s offerings are strictly in the premium range, Samsung has a wide portfolio and relies on all price segments to churn out a profit. These are just initial signs of trouble for the giant, and it needs to act fast. The brand has already lost considerable ground in important markets like India and has failed to get a foothold in China.

Xiaomi once again placed a capable Snapdragon chipset in its lowest-end Redmi model. This time, it’s the Snapdragon 439. With the 4000mAh battery, this phone is built to last long on a single charge.

The memory and storage options of 2GB+16GB and 3GB+32GB aren’t as impressive, especially against today’s standards, but as the previous two generations had proven. they’re sufficient for basic apps and tasks.

On the back is a single 13-megapixel camera while the front houses a standard 5-megapixel shooter. As for the display, it’s a 5.45-inch 720p LCD with no notch or hole in it. Once again, there’s no fingerprint scanner to be found.

Indeed, this is as basic as it gets for a smartphone, but like the Redmi 5A and 6A, the Redmi 7A is suitable for first-time smartphone users and those who needs an inexpensive secondary phone.

While no official pricing has been announced yet, it’s expected to retail for no more than US$ 100 like its predecessors. We’ll learn more during the Redmi K20 launch happening on May 28.

Now, the company has lost another major backer. Reported by Nikkei Asian Review, the SD Association has revoked Huawei’s membership status. As the name suggests, the trade group dictates the SD and microSD standards of the industry. The Chinese company cannot use the standard for future devices anymore. Fortunately, Huawei can still use the memory cards for existing phones.

However, the latest bridge-burning has drastically changed the company’s future. Given everything, Huawei’s future does not include Google, ARM, and microSD extensions, among others. All three components are major parts of today’s phones.

Fortunately, the loss of microSD support isn’t a deadly deal. Huawei can still use other standards for memory card extension. The company also has its own proprietary standard called the Nano Memory Card. Of course, proprietary hardware is almost always a turn-off. Despite cushioning the SD Association loss, the Nano Memory Card isn’t as appealing as the universally available microSD card.

In other news, Huawei has also “temporarily” lost access to the Wi-Fi Alliance. Much like the SD Association, the Wi-Fi Alliance dictates the connectivity standards of devices. Thankfully, Huawei can still use Wi-Fi in its devices. However, the company cannot participate in any discussions to shape Wi-Fi’s future.

Likewise, Huawei has voluntarily withdrawn from JEDEC, a trade group that defines semiconductor standards. As with the Wi-Fi Alliance, the company cannot contribute to any future discussions.

Fortunately, both restrictions don’t impact the company’s future as much. However, Huawei’s future is slowly moving away from industry standards. If the company hopes to survive, Huawei must develop its own proprietary hardware or find replacements elsewhere.

Philippines: Huawei ban ‘will have a little impact’ on the country

Throughout the past few days, the Huawei debacle has devastated companies and consumers across the globe. Everyone is falling for the fear. Huawei’s long-standing suppliers have cut ties with the company. Huawei’s consumers are getting rid of their favored headsets. The wave has swept the whole world.

Naturally, the Philippines isn’t immune. Recently, smartphone retailers and resellers have started refusing Huawei devices from their stores. Local Huawei users can’t easily sell their devices to the second-hand market anymore.

However, an important question still stands. How much will the Huawei ban affect the Philippines?

Of course, the ban originates from Trump’s trade war against China. Among other reasons, the American government cites the company’s inherent cybersecurity risks as the prime motivator. Supposedly, Huawei’s telecommunications hardware can transmit valuable data to the Chinese government. Given the Philippines’ proximity to China, are we also at risk?

According to the Department of Information and Communications Technology, Huawei’s ban “will have a little impact in the Philippine telecommunications industry.” Shared through a Facebook post, the DICT assures users of the country’s robust cybersecurity measures. As of now, the department has not reported any cybersecurity breaches coming from Huawei equipment.

Likewise, shortly after the news broke, local telcos confirmed continued support for Huawei’s devices. According to the DICT, “they will diversify in their present and future procurements of equipment to make their networks more robust and future proof.” The department is also imposing strict rules on local telcos regarding network monitoring. The statement also quickly adds the imposition of the same rules on a potential third telco.

Is the DICT’s statement believable? For now, Huawei’s impact is still marginal at best. Companies and consumers are going on the perceived risk of the future. Right now, Huawei has not announced drastic changes to its products yet. Existing Huawei products still support Google.

Of course, cybersecurity is another issue. The risk will always exist when foreign companies control the telecommunications equipment of another country. At the very least, the DICT isn’t treating the whole debacle as a non-issue. Hopefully, the department’s promises are an optimistic sign for the country’s telecommunications industry.